3 APRIL 2020
Are we winning the war?
ISSUE 236
YOUR REAL INDEPENDENT WEEKLY LOCAL NEWS
News
PAGE 12 3 APRIL 2020
As self-isolation measures ramp up for Australians returning from overseas, stories of Central Coast residents recently returned. STIMULUS SHARE
WWW.COASTCOMMUNITYNEWS.COM.AU
A Guide to Federal Government Stimulus Measures The Federal government has now released three economic stimulus packages, each one trumping the one before it in size and scope. Central Coast news has tried to assemble details of the measures most relevant to local residents, including workers, households, retirees and small business. This guide is provided to the best of our understanding and we done our best to check the facts and details of how to access each of the stimulus measures. However it is advised that you visit www.treasury.gov.au for more information. The NSW State Government has also released a range of stimulus measures which are not included here, but which we have detailed in earlier edition of Coast Community News.
News
$130B JobKeeper Payment
$1,500 per fortnight per employee for up to 6 months Businesses of less than $1B turnover and whose revenue has fallen more than 30%, or businesses of more than $1B turnover where revenue has fallen more than 50% Revenue impact will be based on BAS statements for last month or quarter relative to the same period last year Employers must apply to the ATO with supporting info Payable for all employees on the payroll as at 1 March 2020 and who continue to be engaged – full-time, part-time and casuals employed for at least 12 months Payable where businesses re-engage employees recently stood down Scheme commences 30 March – payments will be made by the ATO in arrears commencing 1 May
Income Support Supplement Income support supplement of $550 per fortnight Full amount payable to recipients of Jobseeker (NewStart) Payments, Partner Allowance, Widow Allowance, Sickness Allowance and Wife Pension, Youth Allowance, Parenting Payment, ABSTUDY Living Allowance, Farm Household Allowance and Special Benefits Expanded access for employees recently stood down, sole traders/ selfemployed, casual workers and contract workers who meet the income tests as a result of the downturn due to the Coronavirus Asset testing for JobSeeker Payment, Youth Allowance and Parenting Payment will be waived for the period of the supplement
Household Support Payment Two separate $750 payments to pension, social security, veteran and other income support recipients and eligible concession card holders First payment will be available to those who eligible recipients any time from 12 March 2020 to 13 April 2020 Second payment will be available to those who are eligible payment recipients on 10 July 2020. A person can receive both payments, but only one in each round Exempt from taxation and will not count as income for the purposes of social security, farm household allowance and veteran payments.
Cashflow Assistance for Business $31.9B Enhancement to earlier Package#1 measure (12 March) Now up to $100,000 available to eligible small and medium-sized businesses (turnover less than $50M) and not for-profits (NFPs) Minimum of $10,000 per business for initial period (up from $2,000) Maximum of $50,000 per business for initial period (up from $25,000) Eligible entities will then receive an additional payment for the period JuneOctober equal to the total they have already been paid Payable as an automatic credit by the ATO of 100% of PAYG tax withheld on workers’ wages and salaries from 28 April 200 Different methodologies applied for monthly and quarterly activity statement lodgements – see treasury.gov.au website for details Wage subsidy of 50% for apprentices and trainees from 1 January 2020 to 30 September 2020 up to a maximum of $21,000 per person Expected to benefit around 690,000 businesses employing around 7.8 million people, and around 30,000 NFPs (including charities)
As the Coast’s health system braces for a rise in hospital admissions, nascent signs have emerged of a slowing in the rate of spread of the COVID-19 virus. Earlier this week, the NSW Government imposed new restrictions to limit social gatherings to just two people and to force travellers returning from overseas into mandatory quarantine in city hotels.
NSW Premier, Gladys Berejiklian also granted new powers for police to enforce the rules and impose on the spot fines for overt breaches, while health authorities frantically re-purposed health facilities to increase the State’s intensive care capacity. Against this backdrop, the number of new infections reported in NSW in the 24 hours to 8pm Wednesday (April1) was 116, down from over 200 the week before.
This brings the total number of reported cases in NSW to 2,298, with 43 people in intensive care units. On the Central Coast, the Local District Health advised the total number of confirmed COVID-19 cases has risen to 104, an increase of just 14 cases in the past 48 hours, down from an increase of 32 in the same period last week. There are still no Coronavirusrelated deaths on the Coast and, in fact, only one (non-ICU)
hospital admission. Over 4,280 people have now been tested on the Coast, which implies a positive test rate of around 2.4 per cent, a rate which is very low considering it is based on a sample of people experiencing symptoms and/or who have potentially been exposed to the virus. The slowing rate of spread in NSW comes roughly a fortnight after the initial shutdown measures were introduced and
stands in stark contrast to the rest of the world, where the global death toll has now climbed to almost 50,000. In another glimmer of hope, NSW Police Commissioner told reporters on Wednesday morning, April 1, that the State's social distancing laws, which prevent people from leaving the house without a "reasonable excuse", will be over by the end of June. Reporter: Ross Barry
Two’s company, three’s a fine The National Cabinet has moved to adopt stricter social distancing guidelines, taking the limit on gatherings down from 10 people to just two and requested all Australians stay at home.
Prime Minister, Scott Morrison, announced the drastic new measures during his March 29 press conference, telling the nation that the Cabinet was taking action to slow the spread of COVID-19 and save lives and livelihoods. “We will be living with this virus for at least six months, so social distancing measures to slow this virus down must be sustainable for at least that long to protect Australian lives and help Australia
to keep functioning,” the Prime Minister said. “Our public health measures are taking effect, with over 211,000 tests undertaken and 3,966 confirmed cases in Australia (as of March 29). “The rate of increase in the virus curve is slowing, but overall numbers are still increasing,” he added. Exceptions to the two person gathering limit include: people living in the same household going out together; funerals – maximum of 10 people with strict social distancing to be adhered to; weddings – maximum of five people with strict social distancing to be adhered to; and family units. Following his announcement,
the Prime Minister noted that the new two person limit was not legally binding and that it was up to the individual states and territories to adopt measures to make it enforceable. NSW Premier, Gladys Berejiklian, indicated her government would be moving to adopt the measures and empower the NSW Police Force to enforce them, with new legislation coming into effect on March 30. Under the new guidelines NSW Police now have the power to issue on the spot fines of up to $11,000 and in extreme cases jail time, for those not complying with the restrictions. Reporter: Dilon Luke
See pages 4 and 5
Early Access to Superannuation $1.15B Eligible individuals may access up to $10,000 of their superannuation before 1 July 2020. They will also be able to access up to a further $10,000 from 1 July 2020 until 24 September 2020. Available to individuals who are unemployed, eligible for job seeker payments, youth allowance, parenting payment, special benefit or farm household allowance; or who On or after 1 January 2020, individuals made redundant or had their working hours reduced by 20 per cent or more, or sole traders whose business was suspended, or turnover reduced by 20% or more Application assessed by the ATO via the MyGov website Separate arrangement to apply for self-managed super funds Commences 20 April 2020
Reduction in pension deeming rates $0.9B Temporary reduction in superannuation minimum drawdown requirements for account-based pensions and similar products by 50 per cent for 2019-20 and 2020-21 Reduction in both the upper and lower social security deeming rates to 2.25% and 0.25% respectively. Lower benefits are expected to benefit around 900,000 income support recipients, including around 565,000 people on the Age Pension who will, on average, receive around $324 more in the first full year
SME Guarantee Scheme and other business lending measures Government guarantee of 50% of new unsecured loans to SME enterprises (less than $50M turnover) for working capital Maximum total size of loans of $250,000 per borrower Loans will be up to three years, initial six month repayment holiday Subject to lenders credit assessment processes (Government will encourage lenders to provide emergency overdraft facilities) Commences early April 2020 and available for new loans made by up until 30 September 2020. Exemption for banks from responsible lending obligations (6 months) $90B term lending facility by the RBA for banks at a fixed interest rate of 0.25 per cent to support lower business lending rates 0.25% reduction in RBA official cash rates to 0.25% and 3-year bond-buying operations to reduce longer-term rates
Relief for financially distressed businesses Temporary increase in threshold for creditors to issue a statutory demand on a company and the time required to respond demands Temporary increase in threshold for a creditor to initiate bankruptcy proceedings and extension of period of protection for debtors Relief for directors from any personal liability for trading while insolvent Targeted relief from provisions of the Corporations Act 2001 to deal with unforeseen events that arise as a result of the Coronavirus ATO to tailor solutions for struggling business, including temporary reduction of payments or deferrals, or withholding enforcement actions including Director Penalty Notices and wind-ups.
The Federal government has Investment incentives $6.7B now released three economic stimulus packages, each one trumping the one before it in size and scope.
Increase to instant asset write-off threshold from $30,000 to $150,000 Accelerating depreciation deductions for larger investments – 50% of cost of an eligible asset on installation with existing depreciation rules to apply to the balance For businesses with aggregated annual turnover of less than $500 million Expected to support over 3.5 million businesses employing more than 9.7 million employees.
See page 12
Business
Central Coast Council has joined forces with peak business organisations to set up a Central Coast COVID-19 Economic Task Force. See page 21 Woy Woy Philosophy Society
Missive #14: Hobbes’ Social Contract
Well, it was no easy task getting the Society together this week, what with the ban on social gatherings and all. See page 29
Puzzles page 19
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